A resale condominium offers something new development cannot: actual operating history. Closed sales, audited statements, board minutes, assessments and physical wear can reveal how the building performs after the launch.
Value the specific apartment
Start with recent closed sales in the building, then expand to genuine competitors. Adjust for line, floor, light, view, plan efficiency, condition, outdoor space, storage and monthly cost. Asking prices are market signals, not proof; pending deals are useful only with appropriate caution because the final price and terms are unknown.
Renovation comparisons need discipline. Estimate both hard cost and the time, approval and execution burden. A renovated apartment may deserve more than its contractor invoices if it removes risk and delay, but personal finishes do not automatically transfer dollar for dollar.
Write an offer around leverage and certainty
Price matters alongside financing, deposit, contingencies, proposed closing date and the buyer’s readiness. A clean offer is not the same as an unprotected offer. Coordinate terms with counsel and lender; do not waive a material protection merely to imitate another buyer.
Ask for known assessments, current monthly charges, recent increases, included property, alteration history and any active building issue before anchoring the offer. The listing agent represents the seller unless another relationship is disclosed and consented to.
Use the condominium’s record
Your attorney typically reviews the offering plan and amendments, declaration, bylaws, financial statements, budget, board minutes, lien and litigation information, insurance materials, questionnaire responses and the contract. The buyer’s agent helps identify market consequences and compare the findings with other buildings.
For buildings higher than six stories, NYC’s Façade Inspection and Safety Program requires periodic exterior inspections. A current safe status does not eliminate future maintenance; a SWARMP condition signals repair within the applicable period. Read the related reports and funding plan with qualified professionals when material.
Inspect the apartment and common context
A qualified inspector or engineer can evaluate accessible systems and visible conditions. Scope varies in multifamily buildings, so agree on it in advance. Consider windows, HVAC, plumbing fixtures and pressure, electrical panel, appliances, moisture signs, floors, doors, terraces and alterations. Observe corridors, cellar or mechanical areas where access is permitted, roof context, façade work and elevator condition.
A pristine renovation does not offset an underfunded capital program. A strong building does not erase a compromised line or expensive unit defect.
Clear financing early
Condo financing includes borrower underwriting, appraisal and project review. Insurance, litigation, deferred maintenance, assessments, commercial concentration, sponsor ownership and owner occupancy may matter. Give the lender the building identity early enough to surface issues before contract when possible.
Review the appraisal risk if the unit is unusual or priced above recent evidence. Understand how an active assessment is treated and whether it will be paid, credited or assumed. Cash buyers should still consider future financeability because the next purchaser may need a mortgage.
Resale condo diligence sequence
- Build a closed-sale valuation with explicit adjustments.
- Confirm charges, taxes, assessments and renovation history.
- Structure offer terms with lender and attorney input.
- Inspect apartment and relevant common conditions.
- Review financial, legal, insurance and governance records.
- Reprice risk rather than treating diligence as pass/fail.
- Complete final walkthrough and closing adjustments.
Frequently asked questions
How much below asking should I offer?
There is no standard percentage. Use closed evidence, listing history, competition, condition, seller motivation and your alternatives. An arbitrary discount is not a valuation.
Can the condo board reject a buyer?
Condo purchase processes differ from co-ops, but governing documents may provide a right of first refusal and package requirements. Counsel should explain the specific procedure.
Who pays an existing assessment?
The contract and negotiation determine allocation. Also study the project itself; seller payment does not remove construction or financial risk.
How many years of financials should I review?
Two or more audited years are useful when available, together with the current budget and subsequent developments. Trends matter more than one snapshot.
Should a cash buyer care about lender review?
Yes. Future buyers may finance, and project problems can affect resale demand even if the current buyer does not need a loan.
Document availability and review scope vary. This guide does not replace legal, lending, engineering, tax or accounting advice.
NY Attorney General buyer guidance · NYC façade compliance · Fannie Mae project standards update
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